Which of the following potential outcomes is the MOST critical and foreseeable concern, given the context of the incentive?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Your organization has a long history as a top-level research program in health sciences. Research is of the organization's two main objectives, and is of equal importance with its public education program. After the recent departure of a top researcher, leadership grew concerned that research output would diminish. Accordingly, management has introduced a new metric as part of a control strategy associated with research output. Other metrics and evaluation criteria still remain in place. The new metric is designed to ensure that the number of research studies completed remains high. The metric is tied to incentive compensation, meaning more studies completed will result in higher compensation.

 

Which of the following potential outcomes is the MOST critical and foreseeable concern, given the context of the incentive?

 

A. The number of studies completed will not respond to the incentive.

 

B. The quality of completed studies will diminish.

 

C. Researchers will depart, given the increased management focus on producing research.

 

D. Researchers will begin to do more studies at the expense of other duties.

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